Federal banking regulators may be responsible for the wrongdoing of directors and officers of an institution placed in receivership, an Eastern District court has ruled, precipitating a split among Second Circuit jurisdictions.

Judge John Gleeson of the Eastern District, differing with a federal court in Connecticut, said that directors and officers sued by the Federal Deposit Insurance Corp. could raise, as an affirmative defense to allegations of negligence and breach of fiduciary duty, the FDIC’s responsibility to limit the losses of an institution of which it has become the receiver.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]